Thames Water returns to profit after raising bills

Thames Water has returned to a full-year profit after hiking its customers bills by 40% last year.

The UK’s largest water company reported post-tax income of £113m for the 12 months to the end of March, swinging from a £1.51bn post-tax loss the previous year.

However, the firm’s net debt also swelled to £18.5bn from £16.8bn as it said it “continued to fund the business through… debt and internally generated cash flows”.

Chief executive Chris Weston said: “The progress we have made in turning the company around has meant we are now performing better.”

The publication of Thames Water’s results comes after the government rejected a proposed rescue deal for the business in June.

Under the terms of the deal, Thames’ lenders wanted leniency from future pollution fines in return for writing off £9.4bn of its debt pile and investing new money.

Thames Water said on Wednesday it has enough debt funding to keep the business going “through to Q4 2026”.